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The volatility of <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”nofollow”>bitcoin It's currently lower than some of the biggest tech stocks, including AMD, Nvidia, and PayPal. This change represents a major turning point in the development of cryptocurrency from a speculative asset to a more reliable investment option.
IntoTheBlock data indicates that this development is the result of a growing institutional commitment to a maturing market.
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bitcoin Relative to tech stocks
In an interesting development, the price. <a target="_blank" href="https://www.coinbase.com/learn/crypto-basics/what-is-volatility” target=”_blank” rel=”nofollow”>volatility bitcoin has become more stable than the swings in the stocks of well-known technology giants.
Cryptocurrencies In fact, they have long been known for their wildly fluctuating prices, which typically deter cautious investors.
The price of bitcoin has been less volatile over the past three months than the stock prices of tech heavyweights like PayPal, Nvidia and AMD, according to statistics published by IntoTheBlock in an x post on Wednesday, January 15. .
Notably, bitcoin fluctuated 34% during that time, compared to 37%, 43.30%, and almost 40% for PayPal, Nvidia, and AMD, respectively.
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bitcoin is currently less volatile than many major tech stocks pic.twitter.com/chuE2x1h4T
– IntoTheBlock (@intotheblock) <a target="_blank" href="https://twitter.com/intotheblock/status/1879511439393837548?ref_src=twsrc%5Etfw” rel=”nofollow”>January 15, 2025
Metrics show stability
What does “volatility” mean in the cryptocurrency market? It refers to how quickly cryptocurrency prices change. Big price swings happen very quickly, showing how unpredictable the market can be.
Things like the news, changes in supply and demand, or investor mood can lead to this. High volatility means that prices change a lot, while low volatility means that they remain more stable.
Several indicators, including the bitcoin Volatility Index (BVOL), demonstrate a reduction in volatility. It monitors bitcoin price fluctuations over time and based on its current performance, it is approaching its lowest level in months.
Analysts, including those at Ark Invest, explain that this has to do with higher liquidations and greater adoption by institutional players, such as asset managers and large-scale funds, which stabilize by trading in higher volumes.
What it means for investors
A new generation of investors could become available if volatility subsides, especially those institutions that have long avoided bitcoin due to its unpredictable nature.
Greater stability in bitcoin, the world's most popular cryptocurrency, would also make it a better store of value, comparable to traditional assets like gold. This could help increase your position in diversified investment portfolios.
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2025 and beyond: bitcoin's maturity journey
bitcoin is becoming more stable, which could help it gain more trust from investors and financial institutions. Its reduced volatility shows that it is moving from being a risky asset to a more reliable one. This could make the crypto asset a better option for long-term investments.
People are watching closely how it grows in the future and how it fits into the global financial system as a stable and reliable option.
Featured image from Brookings Institution, TradingView chart
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